Regional: Access to Electricity with New Off-Grid Solar Technology in Central Asia

The new 2016-2020 CAREC Energy Strategy and Work Plan aims to increase the awareness of decision makers and opinion leaders about global energy trends and recent energy innovations to promote new technologies and remove market barriers.

Off-grid electrification is today a viable alternative to grid-based electricity.

The recent technological advances in three areas- lithium-ion batteries, solar power, and energy efficient appliances - have made off-grid connection economically more viable than extending the main transmission and distribution networks, especially in the case of expensive diesel generation supplied grids.

The project will support development of a DC solar kit with DC appliances and Lithium-ion batteries.

Currently the project is in its proof of concept stage. The proof of concept will develop design, complete technical specifications, and identify DC appliances produced by reputable international brands within the target price of $1,500.

The new 2016-2020 CAREC Energy Strategy and Work Plan aims to increase the awareness of decision makers and opinion leaders about global energy trends and recent energy innovations to promote new technologies and remove market barriers.

Off-grid electrification is today a viable alternative to grid-based electricity.

The recent technological advances in three areas- lithium-ion batteries, solar power, and energy efficient appliances - have made off-grid connection economically more viable than extending the main transmission and distribution networks, especially in the case of expensive diesel generation supplied grids.

The project will support development of a DC solar kit with DC appliances and Lithium-ion batteries.

Currently the project is in its proof of concept stage. The proof of concept will develop design, complete technical specifications, and identify DC appliances produced by reputable international brands within the target price of $1,500.

The proposed RETA will take the _proof of concept_ to the pilot phase and will:

(vi) analyze willingness to pay, and social acceptability through consumer survey and focus group studies.

The pilot will include 100 solar kits in each of the 5 pilot countries.

After the pilot, and based on consumer acceptability and technical results, the project will also identify geographical areas within Afghanistan and Pakistan that may use this technology to increase access to electricity by 30,000 to 50,000 households for a scale up project and local market development.

Project Rationale and Linkage to Country/Regional Strategy

More than 700 million people in Asia and the Pacific have no access to electricity, and a large number of them are in two CAREC member countries: Afghanistan and Pakistan. People in the remote mountainous areas of other CAREC countries also have poor access to reliable electricity. People rely on kerosene lamps for lights, when they have no access to electricity. An International Finance Corporation study notes that about 144 million people have no access to reliable electricity in Pakistan alone and that people spend about $2.3 billion annually on candles, kerosene lamps, and battery-powered flashlights. Kerosene lamps cost up to 30 times more than the inefficient incandescent bulb and 100 times more than compact fluorescent and light-emitting diode (LED) lamps. In some poor households, kerosene costs may account for up to 25% of their family's monthly income, and people in off-grid areas often travel to electrified towns to charge their phones for a fee. Further, kerosene lamps release black carbon into the environment, pollute the air inside homes, and cause lung and eye diseases. They produce insufficient light for work or study and their naked flame causes many accidents and injuries.

Small (30 or 50 watt) off-grid solar lighting systems are a popular alternative to kerosene lamps. About 4.5 million households and 25.0 million people in Bangladesh have replaced kerosene lamps with small solar home lighting systems, and about 35.0 million people in Africa have basic lighting under the Lighting Africa Program of the World Bank. In Pakistan, the Buksh Foundation initiated the Lighting a Million Lives Project to provide solar energy access to rural, unelectrified villages in the country and plans to bring electric lights to 4,000 villages and about 1 million people by 2017. The small systems only provide lighting.

Beyond lighting, modern life requires the use of mobile phone chargers, a mechanical fan, a television, and a small refrigerator. In off-grid areas, these appliances can only be operated with either electricity generated by diesel generators or a larger off-grid solar system with lead acid batteries. Both of these options are expensive and are beyond the reach of the average household in rural areas. Diesel generation is an electrocution risk and requires expert knowledge, a large fuel inventory for reliable supply, and technical knowledge to manage the generation set; a lead acid battery-based system requires battery replacement every 1 3 years.

Recent technological advances and price reductions in three areas lithium-ion batteries, solar power, and energy-efficient appliances have made larger off-grid solar systems economically more viable than extending the main transmission and distribution networks, especially in the case of expensive diesel generation-supplied grids. With this new technology, millions of people may be able to stop using kerosene lamps and start producing their own electricity, leapfrogging the long wait for connection to the electricity grid. As larger solar panels have become cheaper and suppliers of lithium-ion batteries are ready to provide more than 5 years of guarantee, it is possible to design a system that can power lights, a television, and a small refrigerator; and charge mobile phones for off-grid communities.

Off-grid solar approach may soon be the preferred choice over grid-connected electricity, even in countries with 100% electrification.

The TA aims to demonstrate the technical and financial viability of this new technology combination in the CAREC region, and enable the off-grid community to move from basic lighting to a range of basic battery-operated appliances using larger solar panels and long-life lithium-ion batteries. This is consistent with other ADB investments that allow off-grid solutions as a long-term technology option on the least-cost optimization plan.

Business opportunity for private sector and open source platform: Private sector engaged during Asia Clean Energy Forum (Manila, June 2017), Energy Investment Forum (Astana, Kazakhstan, July 2017) and site-visit in Astana Solar (solar manufacturing company). Preliminary designs made available through social media and request for information (posted in social media) as step towards developing an open source community.

In one of CAREC ESCC meeting, senior officials discussed and agreed on a new technology vision for pilot projects using readily available equipment in developed countries, thus this TA is prepared.

During Project Implementation

Close coordination and regular consultations are to be held with CAREC ESCC member countries. Continuous creation and promotion of solar off-grid technology in social media through various knowledge products.

ADB will recruit up to four individual technical experts (one as the consultant team leader).

An international consulting firm to manage the design and implementation of the off-grid solar kits.

ADB will recruit 12 person-months of international individual experts to design the technical specifications of the off-grid kit, its packaging, and component selection criteria based on the preliminary proof-of-concept work.

Once the technical and innovative specification of the design is complete, the consulting firm will distribute, monitor, and report the performance of the pilot project in the five selected countries. The firm will deliver 24 person-months of international and 60 person-months of national consulting services, and will be selected through ADB's quality- and cost-based selection method with a 90:10 ratio and using a simplified technical proposal.

Procurement

For pilot for five countries off-grid kits will be procured including lithium-ion batteries, solar panels, controllers, DC appliances, and other types of equipment.

Responsible ADB Officer

Hasnie, Sohail

Responsible ADB Department

Central and West Asia Department

Responsible ADB Division

Energy Division, CWRD

Executing Agencies

Asian Development Bank6 ADB Avenue,Mandaluyong City 1550, Philippines

Timetable

Concept Clearance

02 Jun 2016

Fact Finding

-

MRM

-

Approval

14 Sep 2016

Last Review Mission

-

Last PDS Update

28 Sep 2018

TA 9168-REG

Milestones

Approval

Signing Date

Effectivity Date

Closing

Original

Revised

Actual

14 Sep 2016

-

14 Sep 2016

31 Oct 2018

31 Oct 2019

-

Financing Plan/TA Utilization

Cumulative Disbursements

ADB

Cofinancing

Counterpart

Total

Date

Amount

Gov

Beneficiaries

Project Sponsor

Others

0.00

2,000,000.00

0.00

0.00

0.00

0.00

2,000,000.00

14 Sep 2016

1,235,419.93

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Procurement Plan

About ADB

The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.